Robinhood has streamlined the process to transfer stocks to other brokerages. It does so through the Automated Customer Account Transfer Service (ACATS).
In this guide, I'll show you how you can use the ACATS to transfer your stocks from Robinhood to TD Ameritrade.
How to Transfer Stocks & Assets from Robinhood to TD Ameritrade Step by Step
TD Ameritrade is a full-service broker that has been in operation for decades. They provide a variety of account options, including retirement accounts. Robinhood, on the other hand, does not currently provide retirement accounts.
Because of this, you may want to transfer your stocks from Robinhood to TD Ameritrade. Others might have a different reason for wanting to do so.
Whatever your reason may be, if you want to transfer your stocks and assets from Robinhood to TD Ameritrade, there are 3 simple steps you need to follow, which are:
- Gather information from Robinhood
- Open a TD Ameritrade account
- Completing the Transfer from Robinhood to TD Ameritrade
1. Gather Information from Robinhood
You'll need to gather some information from Robinhood to transfer stocks out of the platform. Your Robinhood account number is the most crucial information you need to complete this transfer. You can find the account number on your Robinhood statement, and TD Ameritrade will most likely request a copy of it.
To find your Robinhood account number:
- Select Account → Menu (3 bars)
- Scroll to Account No., and then select Show numbers to view your account numbers
If requested, the DTC number you can use is 6769.
You also need to make sure that your account is free from negative balances or account restrictions because all these can impact the transfer time.
2. Open a TD Ameritrade Account
You will obviously need a TD Ameritrade account to receive your stocks and assets from Robinhood. To open a TD Ameritrade account, all you need to do is go to the TD Ameritrade Website, click on "Open new account," and follow the steps, providing all the information to open your account. There is no initial deposit required from you to open the account.
You can skip this step if you already have a TD Ameritrade account.
3. Initiating and Completing the Transfer from Robinhood to TD Ameritrade
Once you've opened the account, you can transfer stocks, options, ETFs, and other eligible assets from Robinhood to your TD Ameritrade account.
To do this, you'll need to ask TD Ameritrade to initiate the transfer, after which they'll submit the transfer instructions to Robinhood's clearing firm, Robinhood Securities (RHS), who will then follow the instructions to initiate the transfer.
Robinhood will charge you $100 when you transfer stocks or cash from Robinhood to an outside brokerage like TD Ameritrade. This fee applies whether you are doing a partial or full transfer.
This fee will be deducted from your Robinhood account's available cash balance before the transfer process begins.
What Happens When You Initiate a Transfer from Robinhood to TD Ameritrade?
When you initiate the transfer, Robinhood would restrict your account just so the transfer would go on smoothly. That said, you won't be able to buy and sell securities or even deposit and withdraw cash because all these actions can delay the transfer.
How Long Does it Take to Transfer Stocks from Robinhood to TD Ameritrade?
After you open a TD Ameritrade account and initiate the transfer, you should expect to wait a week for it to be completed.
It may take up to 2 weeks in some cases, but telling how long such a transfer will take is kind of difficult.
Because there may be a variety of factors that influence the time it takes for the transfer to be processed, it's a good idea to contact Robinhood and inquire.
How to Cancel a Transfer from Robinhood to TD Ameritrade
The only way to cancel a transfer of stocks and assets from Robinhood to your TD Ameritrade account is to ask the latter brokerage to cancel it, since Robinhood does not have control over transfers that have already left your account.
Final Thoughts
While Robinhood provides access to cryptocurrency and has a user-friendly mobile app, switching to TD Ameritrade has several other advantages.
So it all boils down to what you value the most. TD Ameritrade is a no-brainer if you need a lot of training material, prefer a more complex trading platform, and want to trade a wide range of assets.
The most crucial thing to remember is that you will have to pay $75 to Robinhood to complete the transfer. Of course, after the transfer is complete, you can always ask TD Ameritrade if they would cover this amount.
Moving from Robinhood to TD Ameritrade isn't always a good option, but it appears to be for some, in most cases. Although Robinhood's trading app is more user-friendly, there are many more advantages when using TD Ameritrade. However, as I mentioned earlier, the final choice remains yours.
